Dubai firm owner tries to swindle Dh5m from business partner

Dubai - The Dh5 million in question was wired as part of a purchase deal of precious stones.

A firm owner allegedly tried to swindle Dh5 million from his buisness partner, a Dubai court has heard. The Court of First Instance was told the 62-year-old American, who has been detained, tampered with bank papers to get the sole right to sign transactions pertaining to dispose of an account after the disputed amount had been wired.
The Dh5 million in question was wired as part of a purchase deal of precious stones. However, the alleged fraud bid by the owner was foiled after the UAE Central Bank seized the amount, suspecting it to be earned illegally.
In addition to the attempted fraud charge, the investor is also accused of faking a government stamp. He allegedly faked the Dubai International Airport's entry permit stamp on the passport of a man to whom he temporarily granted the right to sign bank papers.
He also forged a bank signature form and used it in his dealings with the bank.
The complainant, a 58-year-old American investor, told the public prosecution investigators that his relatives, "who are into charity activities",  decided to sell precious stones they inherited for Dh5 million. "The buyers sent the amount to an account held by our company branch in Dubai, which I owned along with the defendant.
"On October 24, 2016, I was notified by the bank that the signature on the transactions related to that account became the defendant's on the latter's request and documents he had presented."
The complainant told the prosecutors that he then sent a formal letter to the bank, in which he deemed the procedure illegal as he was the defendant's partner and owned 50 per cent of the firm's shares.
A letter from the bank said a man was given the right to sign the transactions related to the Dh5 million but the defendant cancelled that right in a form dated August 22, 2016. In the bank letter, it was shown that the accused became the only person entitled to sign such transactions of disposal of the account.
The accused claimed during investigation that the Dh5 million was wired in a commercial deal of precious stone purchase. He claimed the amount was worth the complainant's 50 per cent of the company's shares.
The trial has been adjourned to November 7.
mary@khaleejtimes.com

• Dubai